Tradable Order Blocks

The Best Smart Money Trading Strategy

#This eBook is FREE

KenneDyne spot▪️
 WhatsApp +254 101316169
www.institutional-trader.com

KenneDyne spot▪️ | Tradable Order Blocks | 1

 Table of contents

DISCLAIMER 3

What are Order Blocks in Forex Trading? 4

The two main types of Order Blocks include; 4
Bullish OB 4
Bearish OB 4

Order Blocks Trading - Essential Things to Understand 5

Features of High Probability Order Blocks 6

1. Order Block should be at or near the support or resistant 6
2. Order Block should be at or near the Flip Zone 9
3. Order Block should Break Market Structure after Liquidity Raid 14
4. Order Block should be at or near SSR level 15
5. The order block order should be below EQL or above EQH. 16

Putting Everything Together - SOP & Rules for a Complete Setup 18

Multi Time Frame Analysis 18

What to Check For While Doing Multi-Timeframe Analysis 18

1. Past 18
2. Proces 18
3. Approach 19

👀
4. Reaction 19
What Do You See ? 22
Conclusion 23

KenneDyne spot▪️ | Tradable Order Blocks | 2

 DISCLAIMER
IDEAS & STRATEGIES SHARED IN
THIS PRIMER ARE INTENDED AS
EDUCATIONAL INFORMATION ONLY
& ARE NOT INTENDED AS
INVESTMENT ADVICE.
YOU CAN IMPLEMENT THEM WHILE
TRADING AT YOUR OWN RISK.

KenneDyne spot▪️ | Tradable Order Blocks | 3

If you want to become a profitable trader, you only need to spend a few days finding a strategy that
will give you more wins and keep your losses to a minimum, and Order Block candle is one of the few
strategies you need to learn about.

Even though a strategy is not the 100% thing you need to be successful in this field, it's important to have
a solid strategy with a set of rules that will enable you to engage the market at the right time and place.

For Smart Money Traders, the ICT Order Blocks are not a new thing really, but the challenge comes when
you have to select an Order Block that has more chance of respecting the price.

In this Tradable Order Blocks article, I will guide you to understand a few tips on how to select
a high-probability Order Block.

What are Order Blocks in Forex Trading?

Order Block (OB) is the last candle before the strong move that creates an imbalance in the
market, and must be near or at the support or resistance level.

Types of Order Blocks

The two main types of Order Blocks include;

a) Bullish OB

The last candle before the strong move up that creates a strong Bullish imbalance, and must be
near or at the Support or Resistant.
b) Bearish OB

The last candle before the strong move down that creates a strong Bearish imbalance, and must
be near or at the Support or Resistant.

It is assumed that OB candle is where the market makers are likely to enter or exit their positions.

Therefore, the market makers buy or sell large orders at the OB to add liquidity, temporarily
clearing out excess orders from the inventory before the market resumes at an orderly level.
When they come back to the OB (during mitigation), it is when we engage them.

Note: It's important to note that Order Blocks come in different shapes, including Engulfing, Pin
Bar and Double Maru, which I have explained in detail in the Advanced Order Block Trading
book

KenneDyne spot▪️ | Tradable Order Blocks | 4

 Order Blocks Trading - Essential Things to Understand

Mitigation means reducing risk. Mitigation happens during retracement as a result of hedging.

When the market maker moves prices away from a level of strength and magnitude, leaving
behind an imbalance, it is assumed that they are enticing retail traders to join the move.

And because most retail traders are price chasers, they join the ride with their Stop Loses [SL]
set. As a result, the market makers will come back to clear those stops.

When the SL is hit, the retail traders are knocked out of the move, and the market will resume its
normal trend.

NOTE; Mitigation is not a must after an imbalance in the market because this will always
depend on how much profit the market maker has made.

During retracement (mitigation), we say the market is balancing (compressing)

When the market moves from a certain point aggressively, leaving behind an imbalance, we can
also call this Liquidity Void. The Zones created due to this, along with other price actions, are
called Demand and Supply Zones.

KenneDyne spot▪️ | Tradable Order Blocks | 5

 Features of High Probability Order Blocks

1. Order Block should be at or near the support or resistant

Nothing turns off a Smart Money Trader like hearing about support and resistance 😂.
However, if you think that these are just random lines on charts, then you might be getting it
wrong.

When there is a significant breakout of strong resistance, there is a high chance that the market
maker is inducing buyers before they sell.

If this happens at a higher time frame point of interest such as the supply zone, we will prepare to
sell after the formation of the Bearish Order Block.

SOPs;

A significant breakout of strong resistance before the formation of the Bearish OB.
Price must be at Supply Zone (whether in reversal or continuation)

KenneDyne spot▪️ | Tradable Order Blocks | 6

KenneDyne spot▪️ | Tradable Order Blocks | 7
Similarly, when there is a significant breakout of strong support, there is a high chance that the
market maker is inducing sellers before they buy.

If this happens at a higher time frame point of interest such as the demand zone, we will prepare
to buy after the formation of the Bullish Order Block.

KenneDyne spot▪️ | Tradable Order Blocks | 8

SOPs;

A significant breakout of strong support before the formation of the Bullish OB.
Price must be in the Demand Zone (whether in reversal or continuation).

Assignment;

Share in the comment section below the charts for BuOB of the 3 examples given above.

2. Order Block should be at or near the Flip Zone

Flip Zone is when support becomes resistant or resistant becomes support.

This setup has a high probability if you spot it on a trend continuation.

So, how do you trade this set up?

1) One risky setup is to take a trade in the exact flip zone. Check for Bullish Engulfing OB, DM
or a significant breakout (for hidden OBs) in the Flip Zone.

Here, for DM setup and significant breakouts (for hidden OBs) are highly probable if there is a
BREAKER BLOCK on your left.

KenneDyne spot▪️ | Tradable Order Blocks | 9

Eg 1: BeOB at FZ

KenneDyne spot▪️ | Tradable Order Blocks | 10

Eg 2: DM OB at FZ

KenneDyne spot▪️ | Tradable Order Blocks | 11

Eg 3: Hidden OB at FZ (Significant Breakout)

Assignment;

Share in the comment section below the charts for BuOB of the 3 examples given above.

KenneDyne spot▪️ | Tradable Order Blocks | 12

2) Another way to trade OBs near FZ is to wait for FZ formation. This is the most effective
and high probability setup since we are following the footsteps of the big boys. Therefore, we
join the ride on FZ manipulation/breakout.

KenneDyne spot▪️ | Tradable Order Blocks | 13

Assignment;

Share in the comment section below the charts for BuOB of the example given above.

3. Order Block should Break Market Structure after Liquidity Raid

This is commonly known as SH + BMS + RTO.

SH = Stops Hunt (Liquidity Raid.

BMS = Break of Market Structure (MS Break/Market Structure Break).

RTO = Return to OB/Origin.

KenneDyne spot▪️ | Tradable Order Blocks | 14

SOPs

Liquidity Raid should happen inside HTF POI

Assignment;

Share in the comment section below the charts for BuOB of the example given above.

4. Order Block should be at or near SSR level

KenneDyne spot▪️ | Tradable Order Blocks | 15

Assignment;

Share in the comment section below the charts for BuOB of the example given above.

5. The order block order should be below EQL or above EQH.

Here, we wait for the manipulation of EQH or EQL.

For EQH, check for BeOB above EQH. The market will manipulate ( breakout) this EQH before
respecting your BeOB

For EQL, check for BuOB below EQL. The Market will manipulate ( breakout) these EQL
before respecting your BuOB.

This setup gives high probability odds if the EQH or EQL forms at the same level as the Flip
Zone.

KenneDyne spot▪️ | Tradable Order Blocks | 16

Assignment;

Share in the comment section below the charts for BuOB of the example given above.

KenneDyne spot▪️ | Tradable Order Blocks | 17

 Putting Everything Together - SOP & Rules for a Complete Setup

You have realized that the above features might be somehow challenging to only depend on
them, so you need to combine 2 or 3 for you to have a high probability setup.

Here, I will give you a hint of some of the rules I combine before I engage the market. The most
important thing is to monitor how price behaves in different timeframes.

Multi Time Frame Analysis

Over-refining your analysis can also be tricky as you might miss a good move or be thrown out
before the price goes in your anticipated direction, just because you are targeting the smallest
stop loss possible.

However, we all have different styles of trading. Personally, I would rather have a large stop loss
on a high probability setup because the chances of a price going my way has a high chance.

Therefore, doing a multi-timeframe analysis can help you spot a good setup before making your
decision.

What to Check For While Doing Multi-Timeframe Analysis

1. Past

Here, you have to check for confirmation from HTF POI such as;

Supply Zones and Demand Zone

Strong Resistant & Support
Significant Support & Resistance Level
Old High & Low

2. Proces

The price action after the price reacts to your HTF POI is essential for another confirmation.

Here you want to see:

KenneDyne spot▪️ | Tradable Order Blocks | 18

 Market Structure Break, followed by
Flip Zone formation (if it happens though)

3. Approach

How price action is approaching your OB is also an important aspect to consider. To ride with the
big boys, we only want to engage the market after the MM has done a manipulation.

Important questions to ask yourself here are:

Has the price made EQH?

Has Fake MS Break (signaling a sell or buy) happened after price testing the Flip Zone?
Is the price approaching your OB while balancing their orders (Compression) or
Is the price approaching your OB aggressively to fake buys or sells?

Another price action signal you can also check is whether the price is making 3D.

4. Reaction

After the price reacts to your OB, you can get another entry (Confirmation Entry). However, this
hardly happens since your OB with such complete setups act as High Liquidity Zones (HLZ).

So, prices tend to react at this point aggressively without turning back because the market maker
has accomplished his mission (Flip Zone + EQH/L Breakout).

Therefore, if any price action happens after your OB is respected, check for;

SH + BMS + RTO formation

Any other valid setups discussed in this article

Note: If Engulfing, DM or Pin Bar OB forms at this point, it gives a High Probability of
CONFIRMATION ENTRY

KenneDyne spot▪️ | Tradable Order Blocks | 19

KenneDyne spot▪️ | Tradable Order Blocks | 20
KenneDyne spot▪️ | Tradable Order Blocks | 21
Assignment;

Share in the comment section below the charts for BuOB of the examples given above.

What Do You See 👀?

Study the chart below and mark up what you can see. Feel free to share your mark up in the
comment section below

Your primary objective, as a smart

trader, is to wait for your best setups to
show up. Money is made by stalking the
big boys, not being active and forcing
trades every time you see a sexy move.
KenneDyne spot▪️ | Tradable Order Blocks | 22
 Conclusion

You can use this method to trade any financial market including VOLATILITY INDICES,
CRASH/BOOM, UMP INDICES, STEP INDICES, RANGE BREAK INDICES, NASDAQ,
GOLD, BTCUSD, EURUSD, GBPUSD and many more.

Sign up for a demo account and practice this strategy on Synthetic/Volatility Indices.

KenneDyne spot▪️ | Tradable Order Blocks | 23